House rent allowance deduction

In your case, It would be better if you could get rental receipts. To claim H.R.A exemption, on primafacie there will be no problem even you dont have rental receipts with you but if for any furthur enquiry if A.O insists  you should be able to produce rental receipts before him. By considering entire 4,00,000 is only Basic salary income and it is excluding H.R.A, Your dad will get exemption as follows

Rent paid-10% of salary i.e 60000-10% of 4,00,000=60,000-40,000=20,000

Actual H.R.A =17,752

50% of salary=50% of (4,00,000)=2,00,000

Lower of above will get exempted i.e Actual H.R.A = 17,752 (If your dad is in non-metro city then you should consider 40% of salary)

 

Originally posted by : Nuli Swami Ayyappa
	In your case, It would be better if you could get rental receipts. To claim H.R.A exemption, on primafacie there will be no problem even you dont have rental receipts with you but if for any furthur enquiry if A.O insists  you should be able to produce rental receipts before him. By considering entire 4,00,000 is only Basic salary income and it is excluding H.R.A, Your dad will get exemption as follows Rent paid-10% of salary i.e 60000-10% of 4,00,000=60,000-40,000=20,000 Actual H.R.A =17,752 50% of salary=50% of (4,00,000)=2,00,000 Lower of above will get exempted i.e Actual H.R.A = 17,752 (If your dad is in non-metro city then you should consider 40% of salary)

Means

Rs- 400000-200000=200000

200000x10%= 20000+3%= 20600(net tax payable) ???

What is included in the meaning of salary for bra exemption purpose. At several places it includes DA if counted for retirement purposes. If an employer pays pension on 10 months basic salary average called basic pension. Further gratuity is calculated in two ways as per terms of employment at basic pay and on basic plus DA as per payment of gratuity act,higher is paid. Pf deduction on basic only. Leave encashment on Basic and DA.